Daijiworld Media Network – Mumbai

Mumbai, Oct 25: The Securities and Exchange Board of India (SEBI) has clarified that mutual fund schemes cannot participate in pre-IPO placements of equity shares and related instruments, restricting them to investing only in the Anchor Investor portion or the public issue of an Initial Public Offering (IPO).

In a letter to the Association of Mutual Funds in India (AMFI), SEBI cited Clause 11 of the Seventh Schedule of the SEBI (Mutual Funds) Regulations, 1996, which mandates that mutual fund investments in equity shares and equity-related instruments must be in securities that are listed or to be listed. The regulator issued the clarification following multiple queries about whether mutual funds could invest before the opening of anchor or public IPO p

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